Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q1 2014 Earnings Presentation
23 slides from Helix Energy Solutions's earnings presentation, Apr 22, 2014
Slide 1: First Quarter 2014 Conference Call
First Quarter 2014 Conference Call April 22, 2014 Built for success, positioned for growth
Slide 2: Forward-Looking Statements
Built for success, positioned for growth This presentation contains forward-looking statements that involve risks, uncertainties and assumptions that could cause our results to differ materially from those expressed or implied by such forward-looking statements. All statements, other than statements
Slide 3: Presentation Outline
Built for success, positioned for growth Executive Summary (pg. 4) Operational Highlights by Segment (pg. 8) Key Balance Sheet Metrics (pg. 13) 2014 Outlook (pg. 16) Non-GAAP Reconciliations (pg. 21) Questions & Answers ROV onboard client’s vessel * Presentation Outline
Slide 4: Executive Summary
Built for success, positioned for growth Executive Summary *
Slide 5: Executive Summary
Built for success, positioned for growth See non-GAAP reconciliations on slide 22. * Executive Summary
Slide 6: Executive Summary: Q1 2014 earnings and operations
Built for success, positioned for growth Q1 2014 earnings of $0.51 per diluted share compared to $0.35 per diluted share in Q4 2013 Q1 includes a $10.5 million gain on the sale of our former spoolbase facilities, and a $7.2 million insurance reimbursement settlement related to our former oil and gas
Slide 7: Executive Summary: Balance sheet
Built for success, positioned for growth Balance sheet Cash and cash equivalents totaled $470 million at 03/31/2014 Liquidity* of $1.1 billion at 03/31/2014 Net debt of $91 million at 03/31/2014 See updated debt maturity profile on slide 14 We define liquidity as the total of cash and cash equivalen
Slide 8: Operational Highlights
Built for success, positioned for growth Operational Highlights *
Slide 9: Business Segment Results
Built for success, positioned for growth ($ in millions) 91% utilization for the Well Intervention fleet Skandi Constructor completed West Africa well intervention campaign 80% chartered vessel utilization in Robotics 73% utilization of ROV, trencher and ROVDrill Robotics assets Well Enhancer * Busi
Slide 10: Well Intervention
Built for success, positioned for growth GOM Q4000 100% utilized during Q1 IRS no. 2 on hire for 42 days during the quarter (12 days at standby rate) Helix 534 fully utilized during Q1 after being placed in service mid-February 2014 (17 days at repair rate due to IRS startup issues) Both vessels hav
Slide 11: Robotics
Built for success, positioned for growth 80% chartered vessel fleet utilization in Q1 Includes 4 additional spot vessels utilized for a total of 62 days during the quarter 73% utilization for ROVs, trenchers and ROVDrill Deep Cygnus idle for 40 days during the quarter prior to commencement of cable
Slide 12: Utilization
Built for success, positioned for growth Olympic Canyon (1) Deep Cygnus (1) Olympic Triton (1) Grand Canyon (1) REM Installer (1) Seawell Well Enhancer Q4000 Skandi Constructor (1) H534 52 ROVs 2 ROVDrill Units 4 Trenchers (1) Chartered vessel * Utilization
Slide 13: Key Balance Sheet Metrics
Built for success, positioned for growth Key Balance Sheet Metrics *
Slide 14: Debt Instrument Profile
Built for success, positioned for growth Total funded debt of $586 million at end of Q1 2014: $200 million Convertible Senior Notes – 3.25% (A) ($175 million net of unamortized debt discount) $289 million Term Loan – LIBOR + 2.50% (B) Annual amortization payments of 5% in years 1 and 2, 10% per annu
Slide 15: Debt and Liquidity Profile
Built for success, positioned for growth Liquidity of approximately $1.1 billion at 03/31/2014 ($ amounts in millions) Includes impact of unamortized debt discount under our convertible senior notes. We define liquidity as the total of cash and cash equivalents ($470 million) plus unused capacity un
Slide 16: 2014 Outlook
Built for success, positioned for growth 2014 Outlook *
Slide 17: 2014 Outlook
Built for success, positioned for growth Earnings per share estimates based on a corporate tax rate ranging from 25% - 30%. * 2014 Outlook
Slide 18: 2014 Outlook: Backlog and Well Intervention
Built for success, positioned for growth Total backlog as of March 31, 2014 was approximately $2.9 billion, of which approximately $2.7 billion associated with our Contracting Services businesses Utilization expected to remain strong for the well intervention fleet Q4000 backlog through 2015; negoti
Slide 19: 2014 Outlook: Robotics
Built for success, positioned for growth Robust 2014 trenching market in the North Sea, Norwegian Continental Shelf and Middle East Newbuild 1,500hp jet trencher (T1500) expected to enter fleet in mid Q2 2014 with healthy backlog “Walk-to-work” accommodations project in the North Sea utilizing the R
Slide 20: 2014 Outlook: Capital Expenditures
Built for success, positioned for growth Total capital expenditures budgeted at approximately $400 million for 2014; $70 million (including capitalized interest) incurred in Q1, including: Approximately $20 million to acquire the minority interest in the Helix Producer I in February 2014 Approximate
Slide 21: Non-GAAP Reconciliations
Built for success, positioned for growth Non-GAAP Reconciliations *
Slide 22: Adjusted EBITDA from continuing operations
Built for success, positioned for growth We calculate Adjusted EBITDA from continuing operations as earnings before net interest expense and other, taxes, depreciation and amortization. This non-GAAP measure is useful to investors and other internal and external users of our financial statements in
Slide 23: Follow Helix on Twitter and LinkedIn
Built for success, positioned for growth Follow Helix on Twitter: @Helix_ESG Join the discussion on LinkedIn: www.linkedin.com/company/helix
Helix Energy Solutions Group — Q1 2014 Earnings Presentation on 6ix